IMF projects 14% cut in Nigeria’s inflation rate by 2029
The International Monetary Fund, IMF, has suggested that Nigeria’s inflation will stabilize at 14 per cent in 2029, indicating a possible end to the current upward trend.
The forecast is seen as a huge sigh of relief as concerns mount over the increasing inflation rate, which currently stands at 33.69 per cent as of April 2024, according to the National Bureau of Statistics.
The IMF data suggests that the inflation rate will gradually fall from 23 per cent in 2025 to 16 per cent in 2026, 15.4 per cent in 2027, and 14 per cent in both 2028 and 2029.
The predicted stability is expected to raise a positive development for Nigeria’s economy, which has been struggling with rising inflation and interest rates.
Inflation in Africa’s most populous nation has been on the rise since the administration of President Bola Tinubu ended petrol and electricity subsidies and twice devalued the local naira currency.
The central bank has raised interest rates twice this year, including its largest hike in around 17 years, as it struggles to contain the price pressures.
The rising prices have left millions of Nigerians facing the biggest cost-of-living crisis in decades as they fight to meet their most basic necessities.
To relieve the pressure on government workers, Tinubu has pledged commitment to increase salaries, including other social welfare programs, to ease the current economic downturn.
Despite these moves, labour unions have demanded higher pay, including the immediate reversal of the electricity tariff hike.
